Zomato's Subsidiary Secures RBI License for Payment Aggregation

The Reserve Bank of India (RBI) announced the first batch of payment aggregator licences on Tuesday. The likes of Razorpay, Cashfree, Open Financial Technologies, Enkash, and Google Pay all made it to the list

A year ago, the RBI had imposed a ban on Razorpay, Cashfree, Paytm and PayU from onboarding new merchants. The embargo was starting to show an impact on the companies’ topline. Paytm and PayU were left out and are yet to receive the RBI nod.

Zomato (NS:ZOMT)'s subsidiary, Zomato Payments Private Limited, has been granted a payment aggregator (PA) license by the Reserve Bank of India (RBI). This milestone allows Zomato to conduct ecommerce transactions through its platform, enhancing its service offerings.

In an official filing, Zomato disclosed the receipt of the certificate of authorization from the RBI, dated 24 January 2024. This approval aligns with Zomato's prior announcement regarding the establishment of Zomato Payments Private Limited, aimed at conducting payment aggregation and issuing prepaid instruments.

Securing this license places Zomato in the esteemed company of other notable entities like Tata Pay, Razorpay, and Cashfree, who have also obtained similar licenses. This development underscores Zomato's commitment to expanding its business horizons and diversifying its operations within the digital payments landscape in India